‘Fiscal Cliff’ Takes Toll on Markets

Seth Wenig / AP Photo

Don’t panic. The world’s markets will do it for you. Stocks around the world took a tumble last week as fears over whether Washington will compromise on the looming “fiscal cliff” intensified. The Congressional Budget Office has issued stark warnings regarding the combination of tax hikes and cuts to spending, saying that they could drag the U.S. back into a recession if not properly addressed. The Dow Jones industrial average has fallen 7.5 percent since Oct. 5.